IMO, this is a great way to do the mode system rather than putting all dozen modes into one dial.

Let's consider the hypothetical user who uses the Auto and PASM modes equally.

To have a rotating switch with only three modes, and have the other modes in menus means that you often need to do two things to go from Auto to the PASM mode of your choice.

Sure, it'd be easy to go from a PASM mode to Auto... but to get from Auto to a desired PASM mode means turning the dial,
then
going into the menu to find your particular PASM mode if it didn't show up at first turn of the knob. Let's hope that Canon thought this through enough to at least remember the last PASM mode you were in, instead of, say, defaulting to P.

In summary, this is
not
better than a dial with "all dozen modes" on it. And most cameras get away with 7 modes (Auto, PASM, scene/special, movie).